Liu Chuanzhi’s interruption reminded Liu Yonghao of the purpose of this meeting. This meeting was to discuss the setting up of Minsheng Bank. He had forgotten about it after they talk about the Guangcai Program.

  “Manager Feng, I did not expect your businesses to be so successful.”


  “It’s not very successful. Compared to many multination companies, my businesses are nothing. I am only more diversified.”


  “If Manager Feng’s companies are not successful, then what about us? You are too humble. Has Chuanzhi spoken to you about Minsheng Bank? What is your view?”


  “I can invest in this venture. But I have a question. Who knows how to manage a bank?” Feng Yu asked him back.

  “Feng Yu knows someone very familiar with the banking industry. That’s Li Zekai. When he was in Canada, he worked in a bank.

  “We do not have to worry about the managing aspect of the bank. The major shareholder should be China Life Insurance Company. We are just investing in this venture.”


  This was the same as Feng Yu’s previous life. Although it was a non-government bank, the biggest shareholder was still a state-owned enterprise. This bank was only a shareholding with more transparencies.

  This was also a good thing as Minsheng bank was quite successful in Feng Yu’s previous life. After 1998, this bank grew rapidly. Of course, that was the period when almost all of China’s banks quickly developed.

  But there was still an issue that will hinder the growth of Minsheng Bank. In this era, there were many banking regulations and policies restricting the growth of the banks. It includes the Provident fund and housing loans. In the beginning, Minsheng Bank was not allowed to handle these funds, and it restricted the growth of the bank.

  If Minsheng Bank was about to operate like the rest of the government’s banks, then the development will be much better.

  China Life Insurance will become China’s biggest life insurance company will become the world’s highest-valued insurance company in the future. The company has lots of funds. With this company as one of the shareholders, Minsheng Bank will have robust financial backing. Next year, China’s will be implemented and will speed up the development of China’s insurance industry. China Life Insurance’s profits will increase tremendously.

  Combining insurance and banking was a successful model overseas. The banks will use the clients’ premiums to give out loans and do investments. The returns were used to pay out insurance claims. If there were no banks, what will the companies do with the premiums? Deposit in banks for interest?

  The Chinese government wants to develop the insurance industry and indirectly allowed Minsheng Bank to develop. It was not because of these entrepreneurs who set up this bank.

  “What is the initial capital for this bank and how many companies are needed for this venture? Also, what’s the highest number of shares we can own?” Feng Yu asked.

  It was impossible to get the controlling shares or be the major shareholder. But Feng Yu could use many companies to invest in this bank and occupy many seats on the board of directors. He will still have influence over the bank.

  Feng Yu does not want to interfere with the bank’s operations, and the government will also not allow this to happen. But he also does not want to let other people do whatever they want with the bank and does not listen to his suggestions.

  “The initial registered capital is 10 billion RMB, and the most shares we can own is 49%. But there are no regulations that restrict us to trade the shares in the future. There is no restriction on the number of companies, but we wanted at least 10 to 20 companies. This way, we can diversify the risk.” Liu Yonghao explained.

  10 billion RMB was nothing to Feng Yu. But it was not worthwhile to invest so much now. Feng Yu could easily take out 10 billion RMB from his Russian fund, US fund, and even his own pocket.

  But the Chinese current economic conditions and the number of Minsheng Bank’s competitors will lower the profitability of the bank. However, if the bank was to operate normally, the risk of losing money was low.

  Investing in banks is for the future. If Feng Yu could become Minsheng Bank’s major shareholder, then it will be easier for him to manage his finances and raise capital. Also, the banking industry was closely related to the Government. Feng Yu will be able to get first-hand news of the government’s policies. This will have a significant impact on investments.

  Feng Yu suspects that these businessmen joined this venture was to know the government’s future plans and direction. This was because the banking industry was not a profitable industry now. But in the future, if the bank was to be listed and the introduction of wealth management products, it will be profitable.

  “Mr. Liu, can I introduce a few other bosses or companies to join in? Can Hong Kong businessmen participate?” Feng Yu asked.

  “Hong Kong businessmen? I’m afraid not. Although Hong Kong is part of China, the current policies are still slightly different. One country, two systems. Also, Hong Kong is not returned to China yet. What if the businessman suddenly changes nationality?”


  “But our country also have foreign banks.”


  “This Minsheng bank is different. China Life Insurance company is involved. It cannot be influenced by any foreign funds. It’s fine if you want to recommend businessmen or large corporations. But the companies must be clean and have enough financial backings. Most importantly, these companies must be Chinese companies.”


  “Can the companies have Hong Kong shareholders? The major shareholder is Chinese. Can this be allowed?” Feng Yu asked.

  “This is not stated. I will ask and get back to you. What are the companies?” Liu Yonghao asked.

  “Bing City’s Machinery Company, Wind and Rain Electronics, Aiwa Electronics, Wind and Rain Home Appliances, etc. Also, Lehaha Group, Aiwa Little Tyrant, Tai Hua Trading, Tai Hua Agriculture Products, Tai Hua Supermarket Group, Bing City Pharmaceutical. Wind and Rain Logistics, Quanjude Group.”


  Liu Yonghao heard the first few companies, and he knew Feng Yu had shares in these companies. Feng Yu might even have controlling shares. He could tell from the names of the companies. Wind and Rain, Aiwa, Tai Hua, etc. These companies must be related to Feng Yu. But he did not expect there were so many companies.

  Liu Yonghao knew Feng Yu had shares in Bing City’s Machinery Company. But Lehaha Group and Bing City Pharmaceutical were also related to Feng Yu?

  Liu Yonghao admired Lehaha’s Zhong Qingxian for developing his company. Lehaha had been developing well and had grown to become one of China’s top companies. Did Feng Yu have shares in this company or he only know Zhong Qingxian?

  Also, Bing City Pharmaceutical was set up just last year. The products it produced were very popular, and it should be very profitable. This company was also related to Feng Yu?

  Wait, why did this Feng Yu suggest so many companies? He wants all these companies to join this venture and then get a seat in the board of directors?